BILL NUMBER: SB 1932	CHAPTERED  09/28/00

	CHAPTER   818
	FILED WITH SECRETARY OF STATE   SEPTEMBER 28, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 28, 2000
	PASSED THE ASSEMBLY   AUGUST 21, 2000
	PASSED THE SENATE   MAY 25, 2000
	AMENDED IN SENATE   MAY 8, 2000
	AMENDED IN SENATE   APRIL 26, 2000

INTRODUCED BY   Senator Solis

                        FEBRUARY 24, 2000

   An act to add and repeal Article 12 (commencing with Section
18831) of Chapter 3 of Part 10.2 of Division 2 of the Revenue and
Taxation Code, relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1932, Solis.  Taxpayer contributions:  California Lung Disease
and Asthma Research Fund.
   Provisions relating to the administration of personal income taxes
allow individual taxpayers to contribute amounts in excess of their
tax liability for the support of specified funds.
   This bill would additionally allow taxpayers to designate on their
tax returns that a specified amount in excess of their tax liability
be transferred to the California Lung Disease and Asthma Research
Fund, which would be created by this bill.  However, the bill would
provide that a voluntary contribution designation for this fund shall
not be added on the tax return until another voluntary contribution
designation is removed.
   This bill would provide that all money contributed to the fund
pursuant to these provisions would be subject to appropriation by the
Legislature, as specified.
   This bill would also provide that these voluntary contribution
provisions are repealed on January 1 of the fifth taxable year
following the taxable year the fund first appears on the tax return.
The provisions are repealed for taxable years beginning on or after
January 1 of the calendar year in which the Franchise Tax Board
estimates by September 1 that the contributions made on returns filed
in that calendar year will be less than $250,000, and an adjusted
amount for subsequent taxable years.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Article 12 (commencing with Section 18831) is added to
Chapter 3 of Part 10.2 of Division 2 of the Revenue and Taxation
Code, to read:

      Article 12.  California Lung Disease and Asthma Research Fund

   18831.  (a) An individual may designate on the tax return that a
contribution in excess of the tax liability, if any, be made to the
California Lung Disease and Asthma Research Fund, which is
established by Section 18832.  That designation is to be used as a
voluntary contribution on the tax return.
   (b) The contributions shall be in full dollar amounts and may be
made individually by each signatory on a joint return.
   (c) A designation shall be made for any taxable year on the
initial return for that taxable year and once made is irrevocable.
If payments and credits reported on the return, together with any
other credits associated with the taxpayer's account do not exceed
the taxpayer's liability, the return shall be treated as though no
designation has been made.  If no designee is specified, the
contribution shall be transferred to the General Fund after
reimbursement of the direct actual costs of the Franchise Tax Board
for the collection and administration of funds under this article.
   (d) If an individual designates a contribution to more than one
account or fund listed on the tax return, and the amount available is
insufficient to satisfy the total amount designated, the
contribution shall be allocated among the designees on a pro rata
basis.
   (e) The Franchise Tax Board shall revise the form of the return to
include a space labeled the "California Lung Disease and Asthma
Research Fund" to allow for the designation permitted.  The form
shall also include in the instructions information that the
contribution may be in the amount of one dollar ($1) or more and that
the contribution shall be used for lung disease and asthma research.

   (f) Notwithstanding any other provision, a voluntary contribution
designation for the California Lung Disease and Asthma Research Fund
shall not be added on the tax return until another voluntary
contribution designation is removed.
   (g) A deduction shall be allowed under Article 6 (commencing with
Section 17201) of Chapter 3 of Part 10 for any contribution made
pursuant to subdivision (a).
   18832.  There is in the State Treasury the California Lung Disease
and Asthma Research Fund to receive contributions made pursuant to
Section 18831.  The Franchise Tax Board shall notify the Controller
of both the amount of money paid by taxpayers in excess of their tax
liability and the amount of refund money that taxpayers have
designated pursuant to Section 18831 to be transferred to the
California Lung Disease and Asthma Research Fund.  The Controller
shall transfer from the Personal Income Tax Fund to the California
Lung Disease and Asthma Research Fund an amount not in excess of the
sum of the amounts designated by individuals pursuant to Section
18831 for payment into that fund.
   18833.  All money transferred to the California Lung Disease and
Asthma Research Fund, upon appropriation by the Legislature, shall be
allocated as follows:
   (a) To the Franchise Tax Board and the Controller for
reimbursement of all costs incurred by the Franchise Tax Board and
the Controller in connection with their duties under this article.
   (b) To the State Department of Health Services for allocation to
the American Lung Association of California to provide medical
research grants to develop and advance the understanding, causes,
techniques, and modalities effective in the prevention, care,
treatment, and cure of lung disease.
   The lung diseases and research areas shall include, but not be
limited to, the following:
   (1) Asthma.
   (2) Health effects of air pollution.
   (3) Tuberculosis.
   (4) Chronic obstructive pulmonary disease.
   (5) Emphysema.
   Funds may not be used for the department's administrative costs.
   18834.  It is the intent of the Legislature that this article
create an additional funding source for lung disease and asthma
research and shall be used to supplement, not supplant, other funding
sources for this research.
   18835.  (a) This article shall remain in effect only until January
1 of the fifth taxable year following the first appearance of the
California Lung Disease and Asthma Research Fund on the tax return ,
and as of that date is repealed, unless a later enacted statute, that
is enacted before the applicable date, deletes or extends that date.

   (b) If, in any calendar year after the first taxable year the
California Lung Disease and Asthma Research Fund appears on the tax
return, the Franchise Tax Board estimates by September 1 that
contributions described in this article made on returns filed in that
calendar year will be less than two hundred fifty thousand dollars
($250,000), or the adjusted amount specified in subdivision (c) for
subsequent taxable years, as may be applicable, then this article is
repealed with respect to taxable years beginning on or after January
1 of that calendar year.  The Franchise Tax Board shall estimate the
annual contribution amount by September 1 of each year using the
actual amounts known to be contributed and an estimate of the
remaining year's contribution.
   (c) For each calendar year, beginning with the second calendar
year the California Lung Disease and Asthma Research Fund appears on
the tax return, the Franchise Tax Board shall adjust, on or before
September 1 of that calendar year, the minimum estimated contribution
amount specified in subdivision (b) as follows:
   (1) The minimum estimated contribution amount for the calendar
year shall be an amount equal to the product of the minimum estimated
contribution amount for the prior September 1 multiplied by the
inflation factor adjustment as specified in paragraph (2) of
subdivision (h) of Section 17041, rounded off to the nearest dollar.

   (2) The inflation factor adjustment used for the calendar year
shall be based on the figures for the percentage change in the
California Consumer Price Index received on or before August 1 of the
calendar year pursuant to paragraph (1) of subdivision (h) of
Section 17041.
   (d) Notwithstanding the repeal of this article, any contribution
amounts designated pursuant to this article prior to its repeal shall
continue to be transferred and disbursed in accordance with this
article as in effect immediately prior to that repeal.
